1. The Rise and Consequences of Inequality Alan B. Krueger Chairman Council of Economic Advisers January 12, 2012

2. Figure 1: Growing Together, Growing Apart Income Growth by Quintile, Various Periods January 12, 20121 Source: Census Bureau

3. Figure 2: Growing Together Again 1992-2000 January 12, 20122 Source: Census Bureau

4. Figure 3: If Real Incomes Had Grown During the 2000s as They Did During the 1990s, the Median Household Would Have an Extra $8,900 in Annual Income in 2010 January 12, 20123 Note: Shading denotes recession. Source: Census Bureau; CEA calculations $8,900

5. Figure 4: CBO Estimates Show Much Faster Income Growth for the Top 1% 4January 12, 2012 Source: CBO

6. Figure 5: Income Inequality Near Record High 5January 12, 2012

7. Figure 6: The Size of the Middle-Class has Fallen 6January 12, 2012

8. Figure 7: “The Great Gatsby Curve” Higher income inequality associated with lower intergenerational mobility January 12, 20127. Source: Corak (2011), OECD, CEA estimates

9. Figure 8: “The Great Gatsby Curve”: Projection January 12, 20128 United States (2010 Gini). Source: Corak (2011), OECD, CEA estimates

10. Figure 9: Causes of Higher Inequality 9January 12, 2012 Source: Economic Report of the President, 1997

11. Figure 10: U.S. Tax Code is Less Progressive than Most Other OECD Countries 10 January 12, 2012 Before tax After tax, 2010 Source: OECD

12. Figure 11: Despite large tax cuts, less dynamism 11January 12, 2012

13. Consequences 12January 12, 2012 Intergenerational Mobility Consumption Aggregate demand and excess leverage. Economic Growth Morale and Productivity

14. The Rise and Consequences of Inequality Alan B. Krueger Chairman Council of Economic Advisers January 12, 2012